Public Record Versus MLS

[Randolph Kinney]

Not in my market.

 

[glenn walker]

I agree with most of the forums comments ** The problem we face where public records are good is the Fannie Mae CU is run by the lender prior to funding and selling the loan and if our gross living area on the subject or comparables is different from previous appraisals it flags the appraisal. The poster stated he used MLS data but it's possible the gross living area the other appraisers used in their reports was NOT MLS but public records.

If the other appraisers used public records the CU machine chokes. I read two letters Fannie Mae sent to other appraisers on this issue and even though the appraisers were able to write rebuttals that I believe were satisfactory it still goes in their file. In the event there is a buy back I hope we appraisers are not hit up for so called errors or deficiencies.

**** With my luck I can see the Fannie Mae Certified Letter ** You misrepresented the GLA on multiple sales comparables and we have public records to prove it ! : ) Lol

 

[Randolph Kinney]

Looking at my MLS, they tell you the source they used for lot size and Est SF (GLA). Many times it is "assessor record or public record". Other times it is appraisal, plans, Realtor (they are required to measure all rooms and report them in the listing), owner, etc.

Since the CU does not use the local MLS, it can only use the public record or what other appraisers have put in their reports for GLA.

The USPAP requirement is not to be misleading. As long as the appraisal report discloses, analyzes, and makes reasonable judgements, I don't see a problem.

 

[DWiley]

Every situation and every data source is unique. In my market area there are some locales where public record is most reliable and some where another data source is most reliable. In the Memphis market, for example, the appraisers banded together a long time ago and share GLA data through a local source.

Knowing that CU and other systems are out there, I think it is prudent practice to proactively address any discrepancy between the data in the report and the data in public records. To me, that is just a more efficient use of time. It is easier to address while working on the report than it is to go back and have to address it later.

 

[Peter LeQuire]

I've chased this issue this week. MLS briefs will generally cite a source for living area: "Owner", "Plans", "Appraisal", "Tax Records", etc. The brief for a comp cited "Tax Records" as the living area source; the record of the Assessor's office had the living area substantially less than the brief. I called the Assessor's office, which confirmed that the property had been measured. The Realtor said his source was from the planning/codes office, which takes that information from the plans builders provide when applying for the building permit.

The planning/codes people do not use the same criteria as the Assessors: they include covered and enclosed/screened porches in their area. In essence, there can be two (at least) public records sources for living area, and they may not be the same. And, it may not be surprising that MLS may reflect the larger area, whether knowingly or unknowingly. In this instance, the MLS/planning department living area for a comparable was about 11% larger than that shown by the Assessor. In developing this appraisal, I used the Assessor's area. (And, yes, it is less than that in MLS which, admittedly resulted in a smaller adjustment.) I understand that MLS data is relied upon by movers in the market, but to knowingly rely on and incorporate information known to be incorrect into an appraisal is, err, wrong.

 

[Michael S]

How does CU work in areas where there are no public records? New Mexico is a non-disclosure state and only a handful of counties (which don't include the one with half the population) have GLA information online. Most counties the only way to get that information is to actually go down to the Assessor's Office, and even then some will still say it's not public information and will only provide the current owner and land size.

 

[Terrel L. Shields]

Most counties the only way to get that information is to actually go down to the Assessor's Office, and even then some will still say it's not public information and will only provide the current owner and land size.

NM is even worse than Missouri about that - freaked them out when i requested a landowners map down in Otero county.

 

[Tim The Enchanter]

I think it's important to read the listing comments. Sometimes the agent will ad an ADU or something to GLA and use that. Sometimes they will round up for no good reason. Otoh public records can be out of date or just wrong too. I use whatever source is more credible on that particular property. Public records in most of my areas are pretty good.

 

[glenn walker]

From what I have been told the CU does not currently work well in non-disclosure states BUT it's collecting data on every appraisal coming through the system so when you complete your appraisal the subjects GLA (what you measured ) will be entered into the data base. The GLA used for the comparable sales is also entered into the data base. At some point every property or should I say many properties will be part of the data base and Fannie Mae will have a good idea of what GLA and room count is on these properties.

Back in the day we had CMDC which was a major data service. I would complete the appraisal and send CMDC a copy of our appraisals and they would give other appraisers information about GLA and room count based on our appraisals. Example would be the public records showed the subject as a1,200 Sq.Ft. 3 bedroom 2 bath ( but my appraisal showed 1,600 Sq Ft. because it had a 400 Sq.Ft. family room addition) it was a great service but they sold our data to FNC and we lost our membership without one dollar being paid to appraiser members who believed they were part of a co-op type of deal. ** All of the data we submitted was hi-jacked ** and sold for a lot of money BUT Anyway that's another story as far as Fannie Mae It may take 10 or more years but over time the CU should collect enough data in the non-disclosure states to cover 70% or more of residential properties.

Pure speculation but : I would also not be surprised if Fannie Mae at some point joins every MLS system in the country and extracts that data. Fannie Mae is in receivership but every dollar it makes goes directly into the Treasury and in the last two years it has been billions. Never underestimate the federal Government especially when it gets its hands on a cash cow there is no stopping it . BIG BROTHER IS FOR REAL

 

[normando]

When you accurately measure your subject and the gross area is different from public records, you note that. However we use gross area for comps from public records and their incorrect. I adjust the gross area correctly but CU will bring a red flag that my comps' gross area are different from public records and other appraisers' input.